CA: State Senate leaders announce budget compromise

Sac Bee ^ | 7/24/03 | AP

[NormsRevenge]

Senate leaders announced Thursday a budget compromise that could break California's 24-day deadlock over spending and taxes.

The proposal, which would still need approval from the state Assembly and the signature of Gov. Gray Davis, would finance the state's existing $10.7 billion deficit and impose more than $11 billion in cuts to all state services.

[NormsRevenge]

No new taxes.. 3 way tax swap involved.. Smoke and mirrors and purple haze..

[NormsRevenge]

They delayed doing it right a year.. Oh Boy!

Beware in 2004, demRats Ping

[jimtorr]

Pacific Legal Foundation has already threatened to sue if the state issues "deficit bonds" without a popular vote approving the bonds, as required by the state constitution. See the link below.

http://www.freerepublic.com/focus/f-news/952070/posts

[evaporation-plus]

They delayed doing it right a year.. Oh Boy! Beware in 2004, demRats Ping

By that time they will do away with super majority for tax increases and the dems will get their way......

[NormsRevenge]

California demRats Open Mike Moment(s)

You be the Judge!

http://news.yahoo.com/fc?tmpl=fc&cid=34&in=us&cat=democratic_party

Open Mic Catches California Democrats
(AP) - Unaware that a live microphone was broadcasting their words around the Capitol, Assembly Democrats meeting behind closed doors debated prolonging California's budget crisis for political gain. Members of the coalition of liberal Democrats talked about slowing progress on the budget as a means of increasing pressure on Republicans. A microphone had been left on during the closed meeting Monday, and the conversation was transmitted to about 500 "squawk boxes" that enable staff members, lobbyists and reporters to listen in on legislative meetings. More...

• Democrats' Budget Debate - Excerpts [PDF] (CA GOP Caucus)
• Calif. Budget Crisis (PPIC) | Message board

[Ernest_at_the_Beach]

A swap plan eh?

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[Ernest_at_the_Beach]

The announcement comes on the same day that one of the country's most influential rating agencies that it had lowered the state's credit rating to one notch above junk bond status.

Why is it still above junk bond status?

[NormsRevenge]

There are no guarantees the dems will necessarily win those battles.

[ErnBatavia]

Yep - reminds me of this 'blast from the past'...

[evaporation-plus]

There are no guarantees the dems will necessarily win those battles.

For the sake of the Calif. taxpayers, I hope your correct!

[NormsRevenge]

The proposed agreement includes a complex tax swap that involves diverting a half-cent sales tax that now goes to local government to pay off the deficit bonds.

In exchange, cities and counties would receive an equal amount of property taxes that now goes to schools. Schools then would receive more money from the state general fund.

I'm dizzy reading this. :-\.. So no cuts in education, this year or add'l cuts in public health programs..

[Zathras]

I suspect this is a "Poison Pill" directed at anyone who is considering running for Gov. 2004 will be bloody and the Gov will get blamed big time if he's GOP.

[NormsRevenge]

You know the demRats, enough is never enough. Prop 13 is their ultimate goal. They want to "reform" it.

The 55% solution in place of the supermajority requirement will be fought tooth and nail. I hope Im right too! It's expensive enough already living in this state these days.

[bruinbirdman]

"The announcement comes on the same day that one of the country's most influential rating agencies "

The announcement comes a day or two after the 'Rats were overheard planning further destruction of California's economy and it was made public,

yitbos

[NormsRevenge]

It's a Political Realities Convergence Point in this state's history. Wait until next year's batch. ;-)

[PeoplesRep_of_LA]

Open Mic Catches California Democrats

I heard Brulte on John & Ken a bit ago and he was describing this as a result of that Open Mic Gate. I tend to believe him. He said that the tape "took the Democratics" and I knew it would. This budget is bad, but its ALOT better than the one Davis proposed in May.

We might not see the "Washington Monument" stratigy of their's this year. Too bad. I think compromising on this is still bad for the Demos, since it puts so much more attention back on Gray. That's not a good place for it to be.

The power went out here in my area at work for the whole afternoon and you should have heard the Gray Davis jokes flying around even from liberals.

[Torie]

I wonder how the even larger deficit next year will be financed, with that state unable to issue any more bonds?

[Mad_Tom_Rackham]

[In a victory for Republicans, the plan contains no new taxes although many of the deep spending cuts called for by the GOP are also not included. Democrats, however, would avoid making deep cuts to education and public health by delaying repayment of the deficit bonds until late 2004.]

Looks like the Republicans are going to allow an unconstitutional debt rollover so they can avoid tax increases and at the same time avoid being demonized as a cutter of "imprortant and necessary government programs" (talk about an oxymoron!), then hope somebody sues and hauls the thing into court. Once there, the court will probably ignore the debt rollover law and declare the supermajority tax increase law unconstitutional (it's for the children, remember?). The result: government spending increases, taxation increases, government growth increases, companies continue to flee the state, high-income earners continue to flee the state, property values crash, it all hits the fan in 5-10 years. I'll be living out of state by then.

[Torie]

The swap has no economic substance. It is simply designed to circumvent a state law, so that the bonds are secured by a specific revenue stream.

[Weimdog]

I heard Brulte as well. He didn't even mention that to float the kind of bonds they agreed on, they need a vote of the people.